Free Credit Report

Credit checks are performed when you apply for a finance product for example a mortgage, credit card, mobile phone contract or loan (personal, car etc), but also for example when you want to rent a property, or apply for a job. A lender performs a credit check on you (with your permission), and this involves looking at your credit file, which contains your credit history. The lenders access your credit history from Experian, Equifax or TransUnion in the UK.

how to access your Free Credit Reports On-line?

In the UK there are three key credit reference agencies who compile your free credit check reports online, Experian (Credit Expert), Equifax and TransUnion (same as the US). In the UK the credit reference agencies provide access to customers directly to their credit reports and scores or via partner websites so Credit Score Ace has summarised below the best websites to access all three credit reports and scores for free.

Why should i check my Credit Report over time?

The answer is to save money and get accepted for key decisions! You should check your credit report and score before any key credit applications like a loan, credit card or mortgage but also for other big decisions like renting a home. In a nutshell, the content of your credit check report, will impact if you are accepted for a finance product or not, so it is important to check particularly before making any key applications. The content also impacts, if you are accepted, the APR’s or interest rates you are offered, having a good credit history can save you thousands….Your credit report (available with free trials or completely free via partners) and credit score also change over time as you apply for new credit or stop credit accounts hence why it is helpful to monitor it.

Lenders also consider your application details (e.g. salary, home owner, employment status), and develop a credit score for you, in your application. Why do lenders do, credit checks? To reduce their risk of you not paying back the debt, and them making money on the interest on the payments (it costs them to chase debts, and ultimately right some of them off, known as bad debt, which they want to avoid).

What is Included in Your Credit Report and Top Tips to Improve It (and your credit score):

1. Details about the credit accounts you have set-up and your payment history on these. These include if you have missed any payments, or are up to date with them – Top Tip – punctual payments helps so pay on time and use direct debits where possible.
2. How much of your available credit limit you have used – Top Tip – don’t use your full credit allowance, for example don’t max out your credit cards, lenders want to see you have some capacity for further credit.
3. Information about your address on the electoral roll – Top Tip – Make sure this is the same as the address on your credit application, contact your local council to inform them asap, if you have just moved, or apply before you move.
4. Now credit reports include credit scores which is often a number out from 0-1000, categorised by poor, fair, good and excellent. This is a summary of how good your ability is to access credit and is based on the content of your credit report. We have more detail on what a good credit score is and how to improve it.
5. Data on any financial associations, for example a spouse or partner you have a joint account with – Top Tip – if you are financially associated with someone which does not have a good credit score this can impact you, so fill in a dissociation form, and send it to the credit reference agencies.
6. Prior Searches or credit checks on your credit file, shows, where you have applied for other credit products and a lender has reviewed your credit file/credit history – Top Tip –  Do not apply for multiple applications at once, get your credit check report, details in shape 6-12 months before applying, i.e. pay the required amount for your debts and payments on time. If you are rejected stop and check your credit check report, before applying to anyone else.
7. Public Record Information – Such as details of any CCJ’s (County Court Judgements), if you have filed for Bankruptcy, or IVA’s (Indvidual Voluntary Arrangement), Top Tip – Avoid these at all costs, unless absolutely necessary, as they will negatively impact your credit check report.

In conclusion your online credit check report is like your house, it needs regular maintenance! With a bit of effort you can take control of your finances and thus a bit more of your life in general. One last thing, checking your credit report, does not negatively impact it.